Leni Gas & Oil has lost its fraudulent misrepresentation case against Mediterranean Oil and Gas over its former Malta interest.
The company claimed it had been misled when selling it’s 10% stake in the Malta Area 4 production contract to Mediterranean in July 2012.
Less than a month later, Mediterranean farmed out a 75% stake in the same field to Genel Energy for $10million (£6million).
In the opening section of the ruling Mr Justice Males stated “…the claimants’ case fails at every stage, in particular… there was in my judgment no question of any intention to mislead on the part of Dr Higgs (Bill Higgs, Mediterranean Oil and Gas chief executive).”
Following the decision Mediterranean said they “never doubted we would win this case.”
“In 2012, LGO was not prepared to risk a relatively small sum of money to maintain its interest in Malta Area 4 and yet has been prepared to risk very substantial sums of money on High Court litigation,” commented Keith Henry, Mediterranean Oil & Gas chairman.
“With this episode now behind us, Bill and the MOG team can look forward to focussing on the much more positive aspects of continuing to grow the company.”
Leni said it was now considering filing an appeal to the court ruling.
“Today’s decision in the High Court has potential long-term and broad-reaching implications for all minority joint venture partners in the oil industry who need and deserve robust legal protection to ensure that their majority partners provide them will full information regarding the true value of the minority stake,” Leni said in a statement following the court ruling.
“The board is proud of the stand it has taken in seeking to protect the interests of its shareholders and the company is naturally disappointed with today’s decision.”
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